Dangote's Dollar Shift Reveals Nigeria's Bigger Oil Problem
Dangote's Dollar Shift Reveals Nigeria's Bigger Oil Problem What I Cover Julianne Geiger is a veteran energy journalist and market analyst with more than a decade of experience covering the global oil and… Africa's biggest refinery has started pricing fuel in U.S.
dollars because Nigeria can't supply enough Nigerian crude to keep it running.
Dangote Petroleum Refinery, which canprocess 700,000barrels of crude per day, said it is switching domestic gasoline, diesel, and jet fuel pricing to dollars after struggling to secure enough barrels through the government's naira-for-crude program.
Gasoline is now priced at $0.779 per liter, diesel at $1.087, and jet fuel at $0.942.
The refinery says it needs 13 to 15 crude cargoes every month.
State-owned NNPC supplied seven cargoes in May, up from about five previously.
Dangote has been buying the balance on the international market, where crude is priced in dollars.
Nigeria introduced the naira-for-crude program in 2024 to do exactly the opposite.
Domestic refiners would buy Nigerian crude in naira, reducing pressure on the country's foreign exchange market and cutting exposure to the dollar.
Dangote's latest move suggests the program isn't delivering enough crude to Africa's largest refinery.
The country exports well over 1 million barrels of crude every day, yet its flagship refinery still imports part of the oil it processes.
Dangote has already reshaped Nigeria's fuel market.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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